HELLOWORLD TRAVEL LIMITED — Management Reports 2012

Jun 17, 2012

18 June 2 012

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Jetset Travelworld Limited – Review of Business Operations

Jetset Travelworld Limited ( A SX: JET) today provided an u pdate on the outcome of the review o f business operation s that wa s initiated following t h e trading update released on 27 April 2 012.

The Jets e t Travel w orld Group (JTG) has undert a ken a de t ailed revi e w of all a spects of the busi n ess with a particular focus on the Trav e l Management seg m ent. Th e outcome of this review is th a t there will be a re d uction of approxim a tely 110 p ositions a cross the Group with 60% of those po s itions attributable to the Trav e l Manage m ent seg m ent. The majority o f the oth e r position s are in the Wholes a le segment and ari s e as a re s ult of the full integ r ation of t h e operations of Q a ntas Holi d ays/Viva! with the f ormer St e lla Travel Services wholesal e operations.

Followin g this rest r ucture, J T G will co n tinue to e mploy in e xcess of 2,300 pe o ple. This restructu r ing initiati v e will deliver an an n ualised benefit of approximat e ly $9 mill i on. Oneoff costs associated with the restructu r ing will b e approxi m ately $7. 5 million and will be fully pro v ided in t he result s for the financial year ending 30 J u ne 2012 with the restructu r ing to be l argely co m pleted b y 31 Dece m ber 2012. The cos t of the re s tructuring program will be funded from e xisting ca s h reserv e s and available facil i ties.

As previ o usly advi s ed in the trading update released on 27 April 201 2 , the Group is also in the pr o cess of r e viewing the carrying value o f all asset s . Subjec t to tradin g in June, this is lik e ly to res u lt in a no n -cash im p airment c h arge to i n tangible a ssets attri b utable to the Trav e l Manage m ent seg m ent of ap p roximatel y $11 milli o n.

The mo n ths of M a y and Ju n e traditio n ally repr e sent the b usiest tr a ding peri o d for the Group a c ross all t rading s e gments a nd tradin g conditio n s in Ma y were in line with expectations.

The imp a ct of the o ne-off re s tructuring and impairment charges will r e sult in th e reported profit before tax (PBT) for th e financial year end i ng 30 Ju n e 2012 b e ing belo w the prior year rep o rted res u lt of $30.7 million. Subject to tradin g conditio n s in Jun e meeting expectations, JTG e xpects to report an underlyin g PBT adj u sted to e x clude the impact of the one- o ff restruc t uring and impairme n t charge s in the ra n ge of $3 0 - $35 million. The Directors will cons i der the payment o f a final d i vidend in accordan c e with the existing dividend policy at t he time o f finalising the resul t s for the f inancial y e ar endin g 30 June 2012.

JTG CE O Peter Lacaze said that the o n going losses in the Travel M a nagemen t segment had required a det a iled revie w of the re s ources a s signed to that busin e ss activit y .

“JTG has made a strategic decision that the Travel Management business is a key part of the Group’s activities and we remain committed to the business and to servicing our corporate and government customers with a high degree of care and professional service. Our review highlighted that we can continue to provide that degree of professional service with fewer staff due to the productivity efficiencies we have been able to realise as a result of the completion of the merger integration activities,” Mr Lacaze said.

“The integration of Qantas Holidays/Viva! with the former Stella Travel Services wholesale operations will create a stronger wholesale business and will deliver significant enhancements to the available products and levels of service to our customers”.

“These restructuring initiatives will deliver the best result for JTG, will contribute to securing the future of our employees across the Group and will deliver long term benefits to JTG’s shareholders, trading partners, franchisees and members,” Mr Lacaze added.

ENDS Media enquiries to Peter Lacaze, CEO, +61 (0)28229 4084

Investor enquiries to Elizabeth Gaines, CFO, +61 (0)28229 4121

About The Jetset Travelworld Group:

The Jetset Travelworld Group is one of the leading integrated travel companies in Australia and New Zealand. The Group operates a number of leading businesses in the retail, online, corporate, wholesale and inbound travel distribution market with operations in Australia, New Zealand, Asia, Fiji, the United States, South Africa and the United Kingdom.

The Company’s brands include Travelscene American Express, Harvey World Travel, Jetset, Travelworld, BestFlights.com.au, Qantas Holidays, Viva! Holidays and QBT.